Bill · H.R. 7402· House(119-HR-7402)
Unlocking Homeownership Act
- Introduced
- 2/5/2026
- Last activity
- 2/5/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Tim Moore
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The "Unlocking Homeownership Act" seeks to amend the Internal Revenue Code of 1986. This bill would allow people to use money from qualified tuition programs for first-time home purchases. Beneficiaries can use these funds to pay for qualified acquisition costs for a principal residence. This applies to the beneficiary, their spouse, or certain family members like children or grandparents. The law also includes specific provisions for situations involving qualified disasters.
Yes· 3 of 6
Does this make housing cost less?+6
The bill expands the use of 529 plan funds to pay for first-time homebuyer acquisition costs.
Would people in their twenties and thirties be better off under this?+5
The bill provides a mechanism for young adults to utilize tuition savings for their first home purchase.
Would middle-income households be better off under this?+4
The bill allows families with 529 plans to access those funds for principal residence acquisition costs.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Access to Homeownership Funds: Beneficiaries can use distributions from qualified tuition programs to pay for qualified acquisition costs of a principal residence (Section 2(a)(ii)).
-
Support for First-Time Buyers: The bill defines a first-time homebuyer as an individual (and their spouse, if married) who had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition (Section 2(a)(ii)(IV)(I)).
-
Flexibility During Delays: If a home purchase or construction is delayed or cancelled, the distribution can be transferred to another qualified tuition program or an ABLE account (Section 2(a)(ii)(v)).
-
Disaster Recovery Options: Beneficiaries can make recontributions to a qualified tuition program or ABLE account if a distribution was intended for a principal residence in a qualified disaster area but could not be used due to the disaster (Section 2(a)(ii)(vi)).
Potential Negative Impacts for People
- Strict Timing Requirements: To be considered a qualified first-time homebuyer distribution, the funds must be used to pay qualified acquisition costs before the close of the 120th day after the distribution is received (Section 2(a)(ii)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Young Adults+5Good For Middle Class Households+4Good For Students+4
- Social Issues And Justice
- Improves Affordable Housing+6Improves Poverty Reduction+3
- Environment Energy And Infrastructure
- Improves Disaster Relief And F E M A+4
- 4/20/2026
- 1 Cosponsor added.
- 2/5/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
Michael LawlerRepublican · New York